ACLS sold some high energy Purions. Not too earthshaking since they already dominate the high energy segment, and Purion should solidify that further. Still, it's always nice to see good orders reported.
HLIT is a tech company with excellent advanced product offerings into the market it serves. It would be a great investment except for one thing. The management takes far too big a cut of the profits for themselves.
A huge company like this, it's not market manipulation. The company is being valued as a cash cow th a t has dubious growth prospects.
Well they bought the buddy robot company. Hope they know what they are doing. Paid quite a bit. But I have been impressed with the market strategy of Teradyne mgt so I have to give them the benefit of the doubt. Hopefully the robot company is one that has a lot of potential. I assume that part of the motivation was the belief that they could apply the robot technology to some of their other products.
Thinking about getting some. I previously felt this company was too risky because they need to drastically revamp the business. It appears they are indeed in a pretty early stage as far as that goes. Maybe one would be best off waiting a year or two and seeing if they are on a path to offering an attractive set of products. But th e y do have some expertise and I think th e y have smart people working for them. With the strong balance sheet their medium term downside is probably not that bad. Upside, if they do manage to succeed in developing a new set of competitive products, the upside potential of the stock should be in the 5x-10x range.
It's basically the technology. They had excellent new products under development, but that doesn't help until they actually are on the market.
Now their business situation looks extremely promising. It's not that they were lousy managers and all of a sudden they are now geniuses. It is that they had a path of engineering development that led to a very promising long-term business situation, but that doesn't help in the short term.
So in the short term, people bashed Puma for being a lousy manager yada yada. Nope, she has just been playing the cards she had to work with, a shaky short term business situation and a promising long term one.
And now we are on the path to the promised land. ACLS is competently run and has been for years. During the lean times they were setting themselves up for future success by developing Purion.
Well, the promised land is now on the horizon.
But the real sign of ACLS hitting the "bigtime" would be if we start seeing bashers on the board. Now ACLS used to have some critics here, but that was criticism of the "old ACLS". The one where it was a legitimate question whether they had enough critical mass to survive in this marketplace.
What I am talking about is now that ACLS is clearly on a path to success, bashers with some sort of agenda should emerge and start talking down the stock. That would be the bullish indicator.
Then when the rally is long enough in the tooth that Jim Cramer jumps on the bandwagon, that will be the time to take profits.
Good companies don't only go up because business does well. They can also go up when they get "discovered" by the investor community. With ACLS up two days in a row after reporting the quarterly, I think ACLS is starting to be noticed a lot more. That should lead to a higher valuation than what the same company would have if it were in the shadows like ACLS has been up to now.
It would have been nice to have simply held ACLS stock from when it was under a dollar.
But it actually made sense not to take that risk. The fact is that when ACLS was under a buck, its future was far more iffy than it is today. They were the also-ran in implanters with a new family of products whose success was totally in doubt.
Well now things are a lot more clear. The new products are selling and their future looks very bright. And you now have to pay 3 times as much for the stock. You could already have a 3 bagger with ACLS but you would have had to take a lot of risk.
Now its upside is more like 100-150% gain over the next 2-3 years. So the reward is a lot lower. But so is the risk, because they have now shown that they have a product line that is highly competitive.
One thing I probably haven't given ACLS enough credit for. The accolades they win for being the best at customer service.
It would seem to me that it should be harder for a smaller company to maintain a stellar reputation for customer service, simply because I would think their size precludes them from being able to provide as much support as far as things like how much support staff they have to offer and how many locations there are able to offer support at.
But however they do it, these guys manage to get rave reviews for the quality of their customer support. Add to that the fact that they now offer what appears to be the best of breed family of implanters, and that could prove to be a powerful one-two punch.